Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all
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Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements of § 1237 and during the tax year sells the first eight lots to eight different buyers for $22,000 each. Dexter's basis in each lot sold is $15,000, and he incurs total selling expenses of $900 on each sale. What is the amount of Dexter's capital gain and ordinary income?
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Dexter has 1600 ordinary income and 47200 longterm capital gain Selling price 8 ...View the full answer
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